📌 Applicable TDS Rates (FY 25-26)
| Section | About | TDS Rate | Threshold Limit |
|---|---|---|---|
| 192 | TDS on salaried payments | Normal rate of tax | Basic exemption limit |
| 192A | Premature Withdrawal from EPF | 10% | Rs. 50,000 |
| 193 | Interest on securities | 10% | Rs. 10,000 |
| 194 | Dividends | 10% | Rs. 10,000 |
| 194A | Interest (not securities) | 10% | Rs. 50,000 (Senior) / Rs. 10,000 (Others) |
| 194D | Insurance commission | 2% / 10% | Rs. 20,000 |
| 194DA | Life Insurance maturity proceeds | 2% | Rs. 1,00,000 |
| 194C | Contract payments | 1% (Ind/HUF), 2% (others) | Rs. 30,000 (single) / Rs. 1 lakh (annual) |
| 194EE | NSC Deposits | 10% | Rs. 2,500 |
| 194H | Commission / Brokerage | 2% | Rs. 20,000 |
| 194IA | Property Transfer | 1% | Rs. 50 lakhs |
| 194I | Rent (land/building/furniture) | 2% / 10% | Rs. 50,000 per month |
| 194IB | Rent by Individual/HUF | 5% | Rs. 50,000 per month |
| 194J | Professional Fees | 10% | Rs. 50,000 |
| 194JT | Technical Services | 2% | Rs. 50,000 |
| 194K | Mutual Fund Units (not CG) | 10% | Rs. 10,000 |
| 194LA | Compulsory Acquisition | 10% | Rs. 5,00,000 |
| 194M | Payments by Ind/HUF | 2% | Rs. 50 lakh |
| 194N | Cash Withdrawals | 2% / 5% | Rs. 20 lakh / Rs. 1 crore |
| 194O | E-commerce Payment | 0.1% | Rs. 5 lakh |
| 194P | Pension + Interest | Normal Rate | Basic Exemption Limit |
| 194Q | Purchase of Goods | 0.1% | Rs. 50 lakh |
| 194R | Business Perquisites | 10% | Rs. 20,000 |
| 194T | Remuneration to Partners | 10% | Rs. 20,000 |
📌 MAJOR REFORMS IN CAPITAL GAINS
- Now only two holding periods: 12 months and 24 months.
- Listed securities become Long-Term after 12 months. Others: 24 months.
- Indexation benefit removed for LTCG.
- New LTCG tax rate: 12.5%. STCG now at 20% for listed assets.
- LTCG exemption limit raised to Rs. 1.25 lakh.
📌 OTHER MAJOR TAX REFORMS
- New Income Tax Bill, 2025 to replace IT Act, 1961.
- Revised tax slabs under new regime.
- Updated return window extended to 48 months.
- No higher TDS/TCS rates for non-filers.
- Rebate limit increased to Rs. 60,000.
- New TDS section 194T introduced.
- Partner remuneration limit u/s 40(b) raised to Rs. 6 lakh.
- Annual value of 2 self-occupied properties can be claimed as Nil unconditionally.
📢 Thank you for reading!
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